Question 35

Products A, B and C have contributions per limiting factor of 5.50, ________ and 4.50 (respectively). It is decided that the preferred order of production which ____________ profit is C, A and then B.

A 6.50 : minimises

B 3.50 : minimises

C 6.50 : maximises

D 3.50 : maximises

Question 36

A business is evaluating an investment. It has a Net Present Value (NPV) of 0 when the discount rate is 8%. For most similar projects, a discount rate of 10% will result in a

A Internal Rate of Return = 0%

B Net Present Value (NPV) = 0

C negative Net Present Value (NPV)

D positive Net Present Value (NPV)

E Internal Rate of Return = 0%